68(5 THE HOME, FARM AND BUSINESS CYCLOPEDIA, 



286. Single Proprietor. If there be but a single proprietor in the 

 business, instead of carrying the net business loss or gain to his Private 

 account, the Private account may be closed and carried over to the debit 

 side of Loss & Gain account with the other accounts upon which he loses, 

 then the Loss & Gain account closed and his net private loss or gain, as 

 shown by this account, carried to his Stock account. Otherwise, the ac- 

 count may be closed as described in 277 to 285. 



287. EXPLANATION. Loss & Gain account, or Profit & Loss, as it is 

 sometimes called, is an account kept to show the final summing up of all 

 our losses and gains during the year. Some business houses make several 

 entries to this account during the year, but it is the better way to carry 

 the losses and gains into other accounts until the end of the year, and then 

 to carry these accounts into the Loss & Gain account. (See 275 and 276.) 

 A business man wants to know as often as once in twelve months, and 

 sometimes oftener, how much he has gained or lost in his business. In 

 order to ascertain this, it becomes necessary, first to take an inventory 

 and then to " close the books." 



288. If the books are closed semi-annually, or oftener, the phrase " at 

 the end of the year," heretofore used, applies to the time the books are 

 closed, regardless of the actual end of the year. 



THE END OF THE YEAR. 



DIRECTIONS FOR CLOSING THE BOOKS. 



289. First. Take an inventory of all the merchandise, store and office 

 fixtures, real estate, buildings, unexpired insurance, unexpired taxes, etc., 

 etc. Then close all these accounts as per instructions on each. (See 71, 

 95, 100, 106, 185, 188 and 200.) 



290. Second. Sacrifice all the worthless and partly worthless accounts 

 and notes as per instructions in 270 and 271. 



291. Third. Close all accounts in the Ledger upon which losses or 

 gains have been made, and transfer such losses and gains to the Loss and 

 Gain account. (See 275 and 276.) For full instructions, read paragraphs 

 15 to 19, inclusive. A beginner, in closing booko, frequently closes and 

 carries over to the Loss and Gain account, accounts that he should not, 

 and does not close and carry to that account, accounts that he should ; 

 but, if he will thoroughly read paragraphs 15 to 19, and follow the in- 

 structions found therein, he will experience no difficulty in this line. 



